95% Features at Half the Price
That is the essence, according to WSJ about China’s strategy in consumer electronics.
China is ramping up to do the same thing for big-ticket consumer-electronics items — especially wide-screen, high-definition television sets for the living room — that it has already done for smaller items such as DVD players, which now can be bought for $50.
Many medium-size booths were set up at the CES from companies you never heard of — Norcent, Sampo — that were showing off 40-inch and 50-inch HD-TV screens priced $1,500 below the current $4,000 to $6,000 asking prices from the A-list set makers. Expect all of those prices to keep dropping.
China has an inexpensive but well-trained work force, along with access to the very latest semiconductor technology used inside these consumer-technology devices. The country’s basic strategy seems to be to make products with 95% of the performance of the very best from Japan, Korea or Europe, but at one-half to two-thirds of the price.
Indian companies have an opportunity to do the same in enterprise software.